So my partner's family own several properties (rural) and they are A-OK with us doing a new build on one of the properties. Only problem is the bank will not lend us the money we need as the land title is not in our name. We have a 30% deposit saved and ready to go but have no idea what to do from here.....
Is it possible to get around this issue if the land owners guarantor the loan?
Is a ground/land lease a viable option? (Is a 99 year lease even a thing or is that just for Crown Land?)
Please do not respond with ethical advice about building on family land etc. We know the ins and outs and are fully aware of the scale of this decision on all fronts including legal, tax etc. We have other home owner options available but we'd love to live with the rest of his family and farm the land as they do.
We just are looking for a viable way to have the loan approved.
EDIT
There is already an existing house. It would be a knock down and rebuild on the existing site. The land is part of their large scale farming business. Each child lives on a property, however they live in existing homes though. My partner is the only one to want to build.....
4 Replies
I think you are going to need a conveyancer or lawyer for advice.
You can, but look at the ‘tennants in common’ type laws. That’s how you get around it all both legally and above board, so if anything happens (like death of the parents ) then your completely covered and can’t be forced from your home, and still
Forced to pay the mortgage so to speak.
It covers you so you can get the loans as technically you’ll own part of the property that your house would be built on.
The laws differ state to state, so make sure to get proper legal advice
I wonder if they'd sell you the land. You could fence it and mark it out and then there'd actually be no potential for issue in the future. I mean what if something happens and theyre forced to sell? You're not covering yourself.
Are you going to plumb it in and do electrics and everything? Have you got an address? How would your home insurance work on that?
I would probably look at what kind of prefab kit homes you can get for way less than a new home build.
We have bought a property that belonged to a long standing family (rural) each family member owns their parcel and built, the main property is the biggest. Ours and another were sold off as the family members moved on.